2020 was a very tough year for many. Unemployment rates soaring, companies not able to open & serve customers. A lot of things we could have never imagined have occurred. It seems like the “New Normal” of work from home is here to stay for at least a little while.
While 2020 was a tough year for many, other industries like Automotive retail saw a record year in profits. While the total number of cars sold decreased the supply/demand cycle meant customers were willing to pay more for the vehicle they wanted because there was a line to get it.
It also meant dealers were able to maximize their Used cars because of the shortage of New vehicles due to factory & parts supplier shutdowns. Dealerships that adapted quickly to cater to their customers demands of carrying out more of the sales process online really put themselves in a good position to win during the pandemic & we believe those decisions will have lasting effects.
We all know most car buyers do their initial few weeks of research online before stepping foot into a dealership. This top funnel research includes ratings & reviews on sites like Edmunds, kbb & consumer reports. As the shopper narrows down their choices they begin to google search local dealerships and visiting dealer websites and start viewing dealers inventory.
At this point is where the REAL dealer masters really stand out. Customers want to feel comfortable that the vehicle they’re looking doesn’t have any “surprises” because most likely they’ll complete a lot of the buying process in the phone &/or online before they ever see the vehicle. Dealers signed up for services like Spin360 (https://cardata.us/spin-360/) or LESA [https://lesautomotive.com/dealer-video-suite/] which gives online shoppers a DEEP view of the vehicle in a completely engaging & interactive way whether it’s 360 exterior & interior or a complete WalkAround video showing every detail about the vehicle.
Dealers that took advantage of these technologies are seeing more & more online shoppers spending time engaging with their inventory because the online shopper now knows this may be the best look they get at the vehicle before they purchase it. And YES while most dealers have a return policy the mindset of the online shopper is to initially not trust that policy so they’ll be looking even harder at how you’re merchandising your vehicles!